Australia’s childcare system is full of ‘churn’ – this isn’t good for quality or safety
A new report shows how common it is for daycare centres to change owners. The sector also has high staff turnover and relatively low pay.
In Australia, the childcare system is plagued by frequent turnover, raising concerns about the quality and safety of early childhood education. Reports of abuse and neglect have led many to question the trustworthiness of childcare centres. A new report explores the broader factors contributing to these risks, including the high rate of turnover among daycare centres and providers.
According to the Australian Taxation Office, over half of jobs in childcare services lasted less than a year in 2022-23, more than double the rate in primary and secondary education. This churn is the opposite of what children need – stable environments and consistent interactions with trusted educators. Early childhood educators earn a median of $34.30 an hour, compared to $42.40 across all occupations and $62 for school teachers.
The organizations managing the centres also experience considerable turnover, with about 32% of long day care services changing approved providers since 2013, rising to over 40% among for-profit centres.
The Australian government operates a market-based, demand-driven approach, funding childcare centres through a means-tested subsidy paid to providers, who pass it on to families as a fee reduction. This system encourages demand, leading to an increase in childcare places. However, it does not necessarily promote high-quality childcare, as the subsidy treats one hour of care as the basic unit of funding, leaving little room for providers to improve conditions without raising fees.
Federal government data shows that large, private for-profit providers are more likely to have enforcement actions recorded for non-compliance with health and safety regulations compared to other management types. While there are many dedicated early childhood educators, high staff turnover, tight margins, low wages create instability and lack of accountability for quality and safety.
To improve the system, governments should consider funding based on the cost of high-quality childcare provision and play a greater role in areas with fewer services and disadvantaged communities, ensuring stable, high-quality services are accessible to all.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
